Sensex dropped for the sixth straight session and closed well below its 200 days moving average, which is running at 19130 levels. Are we in troubling zone? Surely yes. All eyes will on RBI credit policy today. Market is ready to digest 25 bps rate in repo rate and reverse repo rate. To some extent it may even digest the 50 bps rate hike too, as fall may be limited.

I feel that looking on sluggish IIP data RBI may not go for aggressive rate hikes. Technical support will be at 18800 levels. If it fails to get support at 18800 then we may see a further fall towards 18500 levels. We have seen sell off in public sector banks as some brokerage has downgrade its target. Wait for credit policy and react accordingly.

Nifty has also closed 50 points below its 200 days moving average. Technically if trades sustain below 5670 then we can expect levels like 5630 to 5600. You can expect at least 5670 to be tested. On higher side we have to see close above 5750 to stay in upward journey.

SBIN (Close - 2692.70)

It has already slipped by nearly 8% in past three trading sessions. It has strong technical support at 2670. Even if it breaks 2670 then also it should not drift much lower. Buy this stock from lower levels. Some brokerage has downgraded its target. Well, ignore those.

MCDOWELL-N (Close - 1040.45)

This stock has shown better relative strength in the past session when index lost nearly 0.80%. Technically as long as it sustain above 1020 levels you can expect a move towards 1070 to 1100 marks. I again suggest to buy in dip.

LT (Close - 1604.70)

This stock has seen a sharp intraday reversal from 1560. It is showing the kind of magnitude that if reversal come then it can be very very sharp. Technically as long as it sustain above 1590 we can hope a sharp move. Wait for RBI policy and then act on buying.